The decision aims to tackle stubbornly high inflation that has been exacerbated by rising oil prices amid the US-Israeli war on Iran. Making the announcement, US Federal Reserve Chair Kevin Warsh stressed that the hike was not influenced by financial markets.

However, will the effects of the decision reverberate in Pakistan? Dawn takes a look at how it may impact Pakistan’s economy, with analysts voicing caution for the country’s own policy rate and external debt servicing.

US media outlet CNBC, citing experts, noted that for global markets, a “renewed US tightening cycle could mean a stronger dollar, greater pressure on currencies elsewhere and less room for other central banks to ease monetary policy”.

Mark Zandi, chief economist at Moody’s Analytics, told CNBC that the US hike and signals for another one were putting some upward pressure on the dollar and downward pressure on other currencies. This was already evident on Thursday, with the US dollar hitting a seven-week high.

Shares in Asia, including MSCI’s broadest index of Asia-Pacific shares outside Japan and Japan’s Nikkei, also edged up. Similarly, the Pakistan Stock Exchange (PSX) opened in the positive and gained 0.90 per cent by 1pm.

Commenting on what the US hike could mean for Pakistan, Ammar H Khan, assistant professor of practice at the Institute of Business Administration (IBA), said: “On a forward-looking basis, we may either increase the interest rate by 50-100bps, or the PKR may depreciate.”

Waqas Ghani Kukaswadia, research head at JS Global, also said the US Fed hike could add “some pressure on the rupee and tighten global financial conditions, while making future external borrowing expensive”.

“However, Pakistan’s near-term financing is relatively insulated, as the $3 billion Eurobond issued in September is already locked in. The bigger immediate risk remains elevated oil prices, given their direct impact on Pakistan’s import bill and external account,” he noted.

Business journalist and Dawn columnist Khurram Husain quipped that the hike was “large enough to annoy” US President Donald Trump but “too small to help bring down yields in 10-year and 30-year paper”.

However, he added, there was “nothing major” in terms of the impact on Pakistan.

He explained that the exposure for the country was “not that large”.

“It will mean some increase in external debt service costs, in line with the 0.25pc increase. But that’s more or less it,” Husain said.

Financial analyst Jibran Sarfraz, however, expressed concern over the Fed rate hike. He said the 25bps surge could hurt the fiscal scenario of emerging markets like Pakistan to a severe extent.

“The South Asian nation could face capital flight as investors shift their capital into US treasuries due to higher yields, leading to PKR depreciation as Pakistan could face reduced dollar supply,” he said.

Sarfraz added to Husain’s concerns, noting that Pakistan held significant external debt in dollars and therefore, the rate hike could spike the servicing and make payments costlier.

“However, the major threat to the entire mantra would be the escalating inflation due to a rise in the import cost of essential items, especially food products, and the cumulative inflation — which is already in double digits — could worsen numerically.”

Put in to bat by Pakistan, Thailand posted 91 runs in the designated 11 overs following rain delay before Pakistan went deep and left only two balls to spare as they crossed the finish line.

Fatima Sana’s side had also lost seven wickets in the process and it was the captain’s 21 off 13 after opener Shawal Zulfiqar’s 25 off 14 that kept Pakistan in the game, despite the usually talismanic Fatima losing her wicket before finishing the job.

Thailand had got off to a brisk start, scoring 41 runs in the powerplay on the back of a productive 24 off 22 balls from Nannapat Koncharoenkai. Fatima had drawn first blood with the ball, dismissing Natthakan Chantham for six runs.

Koncharoenkai took the attack to Tuba Hassan and Umm-e-Hani, hitting the latter for 14 runs off the eighth over, as she stitched a solid 65-run stand with Phannita Maya.

A dropped catch by wicket-keeper Gul Feroza and lapses in the field aided Thailand as they raced to 72 off 9 overs, when Maya was retired out on a 16-ball-15.

Nauremol Chaiwai smoked Nashra Sandhu for a six and a four before falling to her on the next ball, getting caught by Fatima.

It was the skipper only who finally dismissed Koncharoenkai in the last over of the shortened innings, the batter narrowly missing out on a half-century as she was trapped lbw for a 38-ball-49; Fatima ended with figures of two for 22 in her three-over spell.

Shawal starts strong

Shawal, and fellow opener Gul Feroza, gave Pakistan a strong start to the chase, scoring two boundaries in the first over. She followed it up with a six off Maya’s bowling in the second.

Both Gul and Shawaal were dropped in the third and fourth overs respectively, but the openers kept the scoreboard ticking before Shawal was caught and bowled by Onnicha Kamchomphu, who took a well-judged catch.

The first wicket triggered a collapse which saw Thailand take four wickets in 13 balls.

Ayesha Zafar came out to bat at one-drop, and was dismissed almost immediately, falling in the next over to Suleeporn Laomi, with Thailand pulling back some control as Pakistan finished the fifth over at 39-2.

Kamchomphu picked up her second wicket as Gul was stumped by keeper Koncharoenkai, with Pakistan finding themselves in a serious wobble at 43-3, which turned into 47-4 as the experienced Aliya Riaz went boundary-and-out in the same over.

Thailand conceded just one run in the seventh over, tightening their grip on the match as Pakistan ominously sunk further.

Fatima, batting at number four, then reeled back momentum by hitting Kamchomphu for three fours and a six in the ninth over, joined by a six off the batting of Eyman Fatima.

The captain fell on the first ball of the following over, and was followed by Eyman in the next as Pakistan again found themselves in some bother at 76-7.

A six and a four off Sunida Chaturongrattana’s bowling by Tuba Hassan took the equation to less than run-a-ball for Pakistan, and following her dismissal to the same bowler, Umm-e-Hani and Eman Naseer took Pakistan over the line in the last over.

Both semi-finals will be held on Sept 20 at the same venue. Pakistan will take on the winners of tomorrow’s quarter-final clash between Malaysia and Sri Lanka.